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K3 Bus.Tech. Share Discussion Threads
Showing 1226 to 1246 of 1250 messages
|yeh this inst great|
Yes, the cloud transition is why turnover has gone static.
I think they forecast 24p in 2018 and £6m debt.
It doesn't look like it will going anywhere until they confirm H2 is inline or ahead.
If they warn again 200p and below that 160p on the chart.|
|But Edison's are also downgrading eps to 16.7 for next year- Of more of a worry for me is the Edison comment that "as well as a higher proportion of cloud-based deals (where revenue is recognised over a longer period of time)" Also from the balance sheet GOODWILL accounts for some 80% of net assets - Goodwill from my very hard earned (ie. massiveve loss of investments) can and often does - evaporate over night. Not saying that this is the case here but before investing - even after the current pull back .......|
|The multi year breakout c.240p is holding as support:
Edison's are forecasting static t/o of £90m for '17 and '18, was £90m in '16. It's a bit like a slug.|
K3 has released an interim trading update indicating that encouraging progress has been made in the first half, with operational reorganisation carving off an expected £3m in annualised opex savings, at a one-off cost of £3m. However, the typically high period end concentration of revenue-win requirements in December (and June) has been victim of slow customer decision making, with the effect of a downward review of forecasts at revenue (£-4m to £89.7m) and EBITDA (£-3.6m to £12.4m). Strong prospects have not gone away and should be reinforced by a reorganisation in favour of divisional simplicity, and the pipeline remains promising, albeit protracted. Target price reviewed to 440p (465p).|
|V little visibility, this comes off the back of a previous 'encouraging update'....hmmmm|
Oh dear!!! Never quite did reach £4+. Pride comes before a fall eh? LOL.|
|Progressive Equity Research out with a fresh piece on KBT this morning:
|I sold out at the open and was pleasantly surprised the price hadn't fallen 30%.
Chart wise there is multi month support around 200p:|
|Nice to see Kestrel offering a further support level at 310p. £330k just purchased.|
|will this seller ever stop!|
|although my buy does seem to be bucking the trend.|
|I've took the opportunity to top up this morning.
Final ex-dividend date:
08 December 2016
24 November 2016
20th January 2017
The above is juicy enough for me.|
|AGM on Thursday 24/11. Hopefully back up to 350p post the RNS statement.|
A good write up from IC.|
|Latest IC comment:
It was difficult not to be impressed by the full-year results performance from retail software company K3 Business Technology
(KBT:350p), the Salford-based supplier of software to the retail, manufacturing and logistics sectors and provider of managed IT and web-hosting services. The fact that its share price is making headway back towards last autumn's 19-year high of 377p tells a story in itself. It's a company I know well, having advised buying at 220p a couple of years ago ('Tapping into retail growth', 16 Sep 2014), and last reiterated that advice at 337p ('On the acquisition trail', 5 Jul 2016).
The key takes for me were growth in sales of K3's higher margin own intellectual property software which now accounts for 25 per cent of the mix and generates a gross margin of 66 per cent; a channel partner network that is clearly gaining traction; and a pipeline of new business which is up 23 per cent to £76m year-on-year. New orders hit a record of £35.3m and helped drive revenues ahead by 7 per cent to £89m in the 12 months to end June 2016. But it's the nature of the new business being won which resulted in both adjusted pre-tax profit and EPS shooting up by more than a fifth to £8.8m and 23.5p, respectively. The fact that K3 hit forecasts even though it was hit by an £830,000 write-down after a client went into administration says much about the resilience of the business too.
In the 12-month period, K3's software license sales increased by 17 per cent to £16.2m, helped by a contribution from the retail segment and its "ax I is fashion" offering. Leading European mail order fashion retailer, TriStyle Mode GmbH was a notable client win as were Lacoste and KLiNGEL, just two of 27 customers signed up through K3's channel partner network.
Acquisitions will contribute to another year of growth too. For instance, K3 recently acquired Merac, the author of an electronic point-of-sale and management system for the visitor attractions and leisure sector. It was an earnings accretive deal as K3 has acquired a business that makes annual pre-tax profits of £330,000 on revenue of £1.27m for a cash consideration of £1.4m. It also adds substance to analyst forecasts that K3 can lift EPS by 11 per cent to 26p in the 12 months to end June 2017, a performance that would easily justify another hike in the payout per share to 2p. The payout was lifted by 16 per cent to 1.75p in the year just ended, a reflection of the cash generative nature of the business.
Analysts believe K3 should be able to report free cash flow of £6m in the current financial year after factoring in capital expenditure north of £5m. This means that even after raising the dividend again the company should be able to cut net debt in half to £4.6m by June 2017. Gearing is only 12 per cent of shareholders funds, so there is scope for more acquisitions too.
So, with the outlook positive, and K3 well funded, I have no hesitation reiterating my buy advice. On 13.5 times forward earnings, and offering decent upside to my 425p target price, K3's shares are a decent buy at 350p.|
|indeed - finally some volume|
|Interest building ahead of next months figs after a few months of snoozing...|
|Strong looking chart.
Just been tipped by Simon Thompson in the IC -
|on the move|
K3 has agreed to acquire DdD, a Danish retail software business specialising in cloud-based, software vendor-independent, convenient out-of-the-box solutions. The £8.1m acquisition is funded by a £13.5m placing at 330p, allowing headroom for working capital demands and further acquisition opportunities. The acquisition represented an alternative to K3's own development of an equivalent vendor-agnostic, cloud-based solution with an estimated development cost of €2.5m, while also bringing current EBITDA performance of €1.1m from revenue of €6.2m in the year to December 2015. Target price lifted to 465p.|